Angel One Stock Split 2026: Why the 90% Price Drop?

A Startling Drop or a Planned Adjustment?

Investors in Angel One Ltd. may have experienced a moment of alarm on Thursday, February 26, 2026, upon seeing the stock price plunge by nearly 90% on trading applications. However, this dramatic drop is not a result of a market crash or poor company performance. It is a planned technical adjustment resulting from the company's stock split, which became effective today as the stock began trading ex-split. This corporate action is designed to make the shares more accessible to a wider range of investors.

Understanding the 1:10 Stock Split

Angel One has executed a sub-division of its equity shares in a 1:10 ratio. This means that every existing equity share with a face value of ₹10 has been split into ten equity shares, each with a new face value of ₹1. The record date for determining the shareholders eligible for this sub-division was set for Thursday, February 26, 2026. Consequently, shareholders holding one share of Angel One will automatically see their holding converted to ten shares. The total value of their investment remains unchanged, as the share price is adjusted proportionately to reflect the increase in the number of shares.

The Price Adjustment in Numbers

To understand the adjustment, one must look at the stock's closing price before the split. On Wednesday, February 25, 2026, Angel One shares closed at ₹2,491.20. Following the 1:10 split, the adjusted price should theoretically be around ₹249.12. On Thursday morning, the stock opened at ₹251.35 and was seen trading around ₹247.05, indicating a relatively flat performance once the split is factored in. The apparent 90% fall is simply the market price reflecting the new, post-split reality. The company's market capitalization remains steady at approximately ₹22,358 crore.

Strategic Rationale Behind the Split

The primary motivation for a stock split is to enhance liquidity and affordability. By reducing the per-share price, Angel One makes its stock more accessible to retail investors who might be deterred by a high entry price. A lower stock price can encourage broader participation, potentially leading to higher trading volumes. The company first announced its intention to sub-divide its shares on January 15, 2026, in conjunction with its financial results for the December 2025 quarter. This is the first stock split undertaken by Angel One since its stock market listing in October 2020.

Strong Operational Performance

The stock split comes at a time when Angel One is demonstrating robust operational growth. In its business update for January 2026, the company reported a significant increase in platform activity. Both aggregate orders and average daily orders reached a 15-month high. The client base expanded to 36.39 million, a year-on-year growth of 20.8%. Furthermore, average daily orders surged to 7.33 million, supported by a strong client funding book and consistent growth in Systematic Investment Plan (SIP) registrations.

A Look at Historical Performance

Since its Initial Public Offering (IPO) in October 2020, where shares were issued at ₹306 apiece, Angel One has delivered multibagger returns for its investors. As of its pre-split closing price, the stock had generated a return of over 715% in less than six years. However, the stock has seen some correction recently, trading more than 24% below its 52-week high of ₹3,283, which was recorded in June 2025.

Key Data on the Angel One Stock Split

Analyst Perspectives on Angel One

Prior to the stock split, several brokerage firms held positive views on Angel One, although their price targets were based on the pre-split share price. Motilal Oswal had a 'buy' rating with a target price of ₹3,400. Similarly, Citi and JM Financial also recommended a 'buy', with price targets of ₹3,215 and ₹2,900, respectively. B&K Securities maintained a 'hold' rating with a target of ₹2,690. Investors should note that these targets would need to be adjusted to reflect the 1:10 split.

Broader Market Headwinds for Brokers

While the stock split is a company-specific action, Angel One and other capital market stocks are facing external pressures. Recently, the Reserve Bank of India (RBI) announced tighter norms on loans extended to brokers and proprietary traders. This move is expected to increase funding costs for brokerage firms, potentially squeezing profit margins. This regulatory change has impacted market sentiment for the entire sector, leading to price corrections in stocks like BSE, MCX, and Angel One, independent of the stock split.

Conclusion: A Technical Event, Not a Fundamental Shift

The significant price drop in Angel One's stock on February 26 is a direct and expected consequence of its 1:10 stock split. It does not reflect any negative change in the company's fundamentals or market value. The move is a strategic one aimed at improving liquidity and making the stock more accessible. While the company continues to post strong operational numbers, investors should also remain aware of the broader regulatory headwinds, such as the recent RBI norms, which could impact the profitability of the brokerage industry as a whole.